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The following relates to a proposed equipment purchase Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $144,000 $ 4,000 4 years

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The following relates to a proposed equipment purchase Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $144,000 $ 4,000 4 years $ 46,100 Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: . $46,100 $11,100 $12100 $74,000. S48,950

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